Investment Rating - The report maintains an "OUTPERFORM" rating for the company [3][5]. Core Insights - The company's profitability has steadily improved, with a net profit attributable to the parent company increasing by 30% year-on-year. In 2023, total operating income reached RMB 21.524 billion, a year-on-year increase of 39.21%, driven by a significant drop in solar module prices that boosted downstream demand [8]. - The company achieved a total operating income of RMB 5.639 billion in Q4 2023, reflecting a year-on-year increase of 32.80%, with a net profit of RMB 791 million, up 27.91% year-on-year [8]. - The company plans to distribute a dividend of RMB 0.38 per share, with a dividend payout ratio of 52.57%, marking an approximate 30% increase year-on-year [8]. Financial Performance - In 2023, the company generated RMB 196.77 billion in photovoltaic glass revenue, a year-on-year increase of 43.82%. The production volume reached 1.212 billion square meters, up 44.52%, while sales volume increased by 49.52% to 1.22 billion square meters [4]. - The overall gross margin for the company was 21.80%, slightly down by 0.27 percentage points year-on-year, with the photovoltaic glass gross margin at 22.45%, down by 0.87 percentage points [4]. - The company’s total production capacity reached 20,600 tons/day by the end of 2023, with plans to expand to 30,200 tons/day in 2024, representing a 47% increase [4]. Valuation - The report adjusts the gross margin estimates for 2024-2025 down by 2.3 percentage points and 1.2 percentage points, respectively. The expected revenues for 2024-2026 are RMB 27.889 billion, RMB 33.167 billion, and RMB 38.648 billion, with net profits projected at RMB 4.169 billion, RMB 5.180 billion, and RMB 6.050 billion [5][9]. - The target price has been revised from HKD 28.43 in 2023 to HKD 27.25 based on a DCF valuation model [5][9].
盈利稳步提升，产能扩张稳固龙头地位